Brazil Gas Law 2009

Law 11909
March 4, 2009,
(The Gas Act)
Decree 7382
December 2, 2010
Law 11909 deals with the activities related to the transport of natural
gas, dealt with in Article 177 of the Federal Constitution, as well
as on the natural gas treatment, processing, storage, liquefaction,
regasification and commercialization activities. This act also changes
Law 9478 of August 6, 1997, and makes other provisions.
The Decree regulates Chapters I through IV and VIII of the Law.
Law 11909 of march 4, 2009 |1

FEDERATIVE REPUBLIC OF BRAZIL
MINISTRY OF MINES AND ENERGY
1. LAW 11909 OF MARCH 4, 2009 .................................... PAGE 2
2. DECREE 7382 OF DECEMBER 2, 2010 .......................... PAGE 30

Presidency of the Republic
LAW 11909 OF MARCH 4, 2009
Law 11909 deals with the activities related to

the transport of natural gas, pursuant to article
177 of the Federal Constitution, as well as the
treatment, processing, storage, liquefaction,
regasification and commercialization of natural
gas. This Law also changes provisions of
Law 9478 of August 6, 1997 and makes other
provisions.
AS THE PRESIDENT OF THE REPUBLIC, I let it be

known that the Congress decrees and I ratify the following:
CHAPTER I
PRELIMINARY PROVISIONS
Article 1. This Law establishes rules for the exploration of

economic activities of natural gas transport through import
and export pipelines, dealt with in items III and IV of the head
paragraph of article 177 of the Federal Constitution, as well as for
the treatment, processing, storage, liquefaction, regasification and
commercialization of natural gas.
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§ 1º The economic activities dealt with in this article shall be
regulated and inspected by the Union, in the capacity of granting
authority, and may be exercised by an enterprise or consortium of
enterprises organized under the Brazilian laws, with headquarters
and administration in the Country.
§ 2º The performance of the activities deriving from
authorizations and concessions dealt with in this Law shall be
at the entrepreneur’s own risk and expense, and that shall by no
means be characterized as a provision of public services.
§ 3º The natural gas sector players shall:
I - perform the activities related to the natural gas sector
pursuant to the Law, the technical and environmental standards
and the respective concession agreements or authorizations,
observing the specific local legislation on the piped gas distribution
services;
II - allow the relevant inspection body to have free access,
at any time, to the equipment and facilities connected to the
performance of their activity, as well as their accounting records.
Article 2. For the purposes of this Law and its regulations,
the following definitions shall apply:
I - Transport Capacity: maximum daily volume of natural
gas that the carrier can carry in a given transport gas pipeline;
II - Hired Transport Capacity: daily volume of natural gas
that the carrier shall move to the utility, pursuant to the respective
transport agreement;
III - Available Capacity: part of the gas pipeline transport
capacity that has not been the subject matter of a firm agreement;
IV - Idle Capacity: part of the gas pipeline transport capacity
hired that has not been used, on a temporary basis;
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V - Utility: agent that uses or aims at using the natural gas
pipeline transport service, upon authorization of the National
Agency of Petroleum, Natural Gas and Biofuels - ANP;
VI - First Utility: it is the utility whose hiring of transport
capacity has enabled or contributed to enable, in whole or in part,
the construction of the gas pipeline;
VII - Public Call for Tender: a procedure, with secured access
to all interested parties, that aims at hiring transport capacity in
existing pipelines, to be built or expanded;
VIII - Commercialization of Natural Gas: purchase and
sale of natural gas, by means of agreements negotiated between
the parties and filed with the ANP, except for the provisions of
paragraph 2 of article 25 of the Federal Constitution;
IX - Private Consumption: volume of natural gas consumed
exclusively in the natural gas production, collection, transfer,
storage and processing activities;
X - Storage of Natural Gas: storage of natural gas in natural
or man-made reservoirs.
XI - Packaging of Natural Gas: confinement of natural gas in
gaseous, liquid or solid form for transport or consumption;
XII - City Gate: a point in the transport gas pipelines where
the natural gas is delivered by the carrier to the utility or any agent
appointed by the latter;
XIII - Point of Receipt: a point in the transport gas pipelines
where the natural gas is delivered to the carrier by the utility or
any agent appointed by the latter;
XIV - Natural Gas or Gas: any hydrocarbon that remains in
gaseous state under normal atmospheric conditions, produced
directly from petroleum or gas reservoirs, whose composition
may contain wet, dry and residual gases;
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XV - Liquefied Natural Gas - LNG: natural gas submitted
to liquefaction process for storage and transport, subject to
regasification in exclusive plants;
XVI - Compressed Natural Gas - CNG: any natural gas
processed and packaged for transport in ampoules or cylinders at
ambient temperature and a pressure that keeps it in gaseous state;
XVII - Transfer Gas Pipeline: pipeline intended for the
movement of natural gas, considered as being of specific and
exclusive interest of its owner, starting and ending in its own natural
gas production, collection, transfer, storage and processing facilities;
XVIII - Transport Gas Pipeline: gas pipeline that executes
the movement of natural gas from the processing and storage
facilities, or other transport gas pipelines, to the storage facilities,
other transport gas pipelines and city gates to state natural gas
distribution concessionaires, except for the cases provided for
in items XVII and XIX of the head paragraph in this article,
including stations for compression, measurement, pressure
reduction and delivery, pursuant to paragraph 2 of article 25 of
the Federal Constitution;
XIX - Gas Production Offloading Pipeline: pipelines in the
production facilities, aimed at the movement of natural gas from
the producing wells to the processing and treatment facilities or
liquefaction units;
XX - Natural Gas Sector: set of economic activities related
to the exploration, development, production, import, export,
processing, treatment, transport, loading, storage, packaging,
liquefaction, regasification, distribution and commercialization
of natural gas;
XXI - Extraordinary Transport Service: method for hiring
available capacity, at any time, and which contains a suspension
condition in case of hiring of capacity under the firm method;
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XXII - Firm Transport Service: type of transport service
where the carrier undertakes to schedule and transport the daily
volume of natural gas requested by the utility until the hired
transport capacity set forth in the agreement with the utility;
XXIII - Interruptible Transport Service: transport service
which may be interrupted by the carrier, given the scheduled
priority of the Firm Transport Service;
XXIV - Transport of Natural Gas: movement of natural gas
in transport gas pipelines, comprising the construction, expansion
and operation of the facilities;
XXV - Treatment or Processing of Natural Gas: set of
operations aiming at enabling its transport, distribution and use;
XXVI - Carrier: authorized or concessionaire company of
the natural gas transport activity by means of pipelines;
XXVII - LNG Terminal: facility used for natural gas
liquefaction or import, discharge and regasification of LNG,
including the ancillary services and temporary storage tanks
necessary for the regasification process and subsequent delivery
of the natural gas to the pipeline network or other means of
transport;
XXVIII - Liquefaction Plant: facility where natural gas is
liquefied, so as to enable its storage and transport, and it may
comprise units for natural gas treatment, heat exchangers and
LNG storage tanks;
XXIX - Regasification Plant: facility where the liquefied
natural gas is regasified through imposition of heat to be introduced
in the pipeline network, and it may comprise LNG storage tanks
and regasifiers, as well as supplementary equipment;
XXX - Natural Gas Sector Players: agents that perform
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activities related to the exploration, development, production,
import, export, processing, treatment, transport, loading,
storage, packaging, liquefaction, regasification, distribution and
commercialization of natural gas;
XXXI - Free Consumer: natural gas consumer that, pursuant
to the applicable state law, has the option of acquiring natural gas
from any producer, importer or retailer;
XXXII - Self-Producer: natural gas exploring or producing
agent that uses part or all of its production as raw material or fuel
in its industrial facilities;
XXXII - Self-Importer: an agent authorized to import natural
gas and use part, or all, of its imported product as raw material or
fuel in its industrial facilities;
CHAPTER II
TRANSPORT OF NATURAL GAS
Section I
Performing the Transport of Natural Gas Activity
Article 3. The transport of natural gas shall be performed

by corporations or consortia, whose formation is governed by
Brazilian Laws, with headquarters and administration in the
Country, at the entrepreneur’s own risk and expense, under the
following regimes:
I - concession, preceded by bidding process; or
II - authorization.
§ 1. The authorization regime dealt with in item II of the
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head paragraph of this article shall be applied to the transport
gas pipelines that involve international agreements, whereas the
concession regime shall be applied to all transport gas pipelines
considered as being of general interest.
§ 2. The Ministry of Mines and Energy shall, after consulting
with the ANP, establish the exclusivity term that the first utility
will have to use the hired capacity of the new transport gas
pipelines.
§ 3. The concessionaire or consortium of enterprises
authorized to perform the transport of natural gas shall only
perform those activities referred to in article 56 of Law 9478 of
August 6, 1997, in addition to the storage, transport of biofuels
and construction and operation of terminals.
§ 4. The ANP may be provided with the competence to
declare the public utility, for the purposes of expropriation and
establishment of administrative easement of the areas necessary
for the implementation of the gas pipelines granted or authorized,
as well as their ancillary facilities.
Article 4. The Ministry of Mines and Energy shall:
I - propose, on its own initiative or driven by third parties,
the transport gas pipelines that shall be built or expanded;
II - establish the guidelines for the transport capacity hiring
process;
III - define the concession or authorization regime, pursuant
to paragraph 1 of article 3 hereof.
§ 1. The Ministry of Mines and Energy shall consider the
Country’s pipeline network expansion studies to comply with
items I and III of the head paragraph of this article.
§ 2. The Ministry of Mines and Energy may determine the
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use of Public–Private Partnership agreements, dealt with in Law
11079 of December 30, 2004, as well as the use of resources
derived from the Contribution for Intervention in the Economic
Domain - CIDE and the Energy Development Account, according
to article 13 of Law 10438 of April 26, 2002, in order to enable
the construction of transport gas pipeline proposed by its own
initiative and considered as being of relevant general interest.
Article 5. The granting of authorization or bidding round
for the concession for transport activities that envisages the
construction of expansion of gas pipelines shall be preceded by
public call for tender to hire capacity, aiming at identifying the
potential carriers and sizing the effective demand.
§ 1. The utilities that fail to hold an authorization shall request
its granting to the ANP, in form and terms defined by the latter.
§ 2 During the process of public call for tender, the ANP
shall, on an iterative basis, establish the maximum rate to be
applied to the utilities interested in hiring transport capacity.
§ 3. The utilities that request transport capacity by the end
of the process of public call for tender shall enter into a term
of commitment with the ANP, for the purchase of the requested
capacity.
§ 4. The term of commitment referred to in paragraph 3 of
this article shall be irreparable and irrevocable and shall be an
integral part of the tender protocol.
Article 6. The ANP shall promote, according to guidelines of
the Ministry of Mines and Energy, on a direct or indirect basis, the
bidding process dealt with in article 5 thereof.
Article 7. The Ministry of Mines and Energy may determine
that the capacity of a gas pipeline is superior to that identified in
the public call for tender, defining the economic mechanisms to
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enable the project, which may establish the use of the Public–
Private Partnership agreement, dealt with in Law 11079 of
December 30, 2004.
Article 8. The transport gas pipelines may only move natural
gas that meets the specifications established by the ANP, except
for agreements entered into by and between the carriers and the
utilities, previously approved by the ANP, without prejudice to
the other users.
Article 9. The carrier shall allow the interconnection of other
transport and transfer facilities, pursuant to regulations established
by the ANP, observing the natural gas specifications established
by the ANP and the existing rights of the utilities.
Section II
Concession of the Transport of Natural Gas Activity
Article 10. The natural gas transport concessions hired

as from this Law shall identify the goods and facilities to be
considered as connected to their use, and shall be in force for
thirty (30) years as from the date of signature of the indispensable
agreement, and they may be extended for equal terms, under the
conditions set forth in the concession agreement.
Sole Paragraph. The extensions referred to in this article shall
be requested by the concessionaire, within twelve (12) months
prior to the final date of the relevant concession agreement, and
the ANP shall manifest on the request within three (3) months
from that date.
Article 11. The ANP shall promote the bidding process for
the concession of the transport of natural gas activity.
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Article 12. The ANP shall prepare the tender protocols and
the concession agreements for the construction or expansion and
operation of the transport gas pipelines under the concession
regime.
§ 1. The ANP, through delegation of the Ministry of Mines
and Energy, shall enter into the concession agreements referred to
in this Law.
§ 2. The preemptive right shall be assured to the carrier
whose facility is being expanded, in case it participates in the
bidding round dealt with in head paragraph of this article, under
the same conditions as the winning bidder.
Article 13. In the bidding process, the criterion to select the
winning bid shall be that of the lowest annual cost, pursuant to the
regulations and to the tender protocol.
§ 1. The annual cost referred to in the head paragraph of
this article corresponds to the annual amount to be received by
the carrier for the provision of the hired service, pursuant to the
tender protocol and the concession agreement.
§ 2. The natural gas transport rates to be paid by the utilities
for the case of the gas pipelines object of concession shall be
established by the ANP by applying, to the maximum rate set in
the bidding process, the same factor corresponding to the ratio
between the annual cost established in the bidding process and
the maximum annual cost defined in the tender protocol.
Article 14. In case of expiration, the goods intended for, and
considered as bound to the performance of the transport activity
shall be incorporated to the Union’s assets, upon declaration of
public utility, and fair and previous indemnification in cash, thus
becoming under administration of the granting authority, pursuant
to specific regulation to be published.
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§ 1. In any case of expiration of the concession, the
concessionaire shall, at its own risk and expense, remove the
equipments and assets that are not object of incorporation by the
Union, being obliged to remedy or indemnify for the damage
arising out of its activities and undertake environmental recovery
action as established by the relevant bodies.
§ 2. The concessionaire whose concession has been
expired shall continue to render transport services until a new
concessionaire is appointed or the pipeline is disabled.
§ 3. The operation rates for the period referred to in paragraph
2 of this article shall be established by the ANP so as to cover the
effective costs of an efficient operation.
Article 15. The goods incorporated to the Union’s assets
pursuant to article 14 hereof may compose a set of goods and
facilities to be bidden together with a new concession for the
performance of transport activity.
§ 1. In the bidding round referred to in the head paragraph of
this article, the highest payment for the use of the public asset, or
the provisions of article 13 hereof, or also a combination of both
criteria, may be used as selection criterion for the winning bidder.
§ 2. The resources collected with the bidding round dealt
with in the head paragraph of this article may be reverted to the
expansion of the natural gas transport network, and, as the case
may be, to the indemnification of the installments connected to
goods to be incorporated to the Union’s assets, yet to be amortized
or depreciated, which have been paid up in order to ensure the
continuation and existence of the service granted.
§ 3. Only investments that had been explicitly authorized by
the ANP shall be indemnified.
§ 4. The bidding process provided for in the head paragraph
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of this article may begin up to twenty-four (24) months prior to
the expiration of the concession term, with a view to ensuring the
continuation of the services rendered, except to the provisions of
the Sole Paragraph in article 10 hereof.
Article 16. The transfer of the concession agreement with the
preservation of its object and contract conditions is allowed.
Sole Paragraph. The transfer of the agreement may only
occur upon prior and express authorization by the ANP.
Section III
The Tender Protocol
Article 17. The tender protocol shall be accompanied by the

respective basic draft concession agreement and shall indicate:
I - the route of the gas pipeline transport object of concession,
the city gates, as well as the forecast transport capacity and the
criteria used for its sizing;
II - the maximum annual transport revenue estimated and the
criteria used for its calculation;
III - the requirements to be fulfilled by the bidders and the
pre-qualification criteria, as the case may be;
IV - the list of documents required and criteria to be
followed for the evaluation of the technical capacity, the financial
competence and the legal status of the interested parties, as well
for the technical and economic-financial judgment of the bid;
V - the explicit indication that the concessionaire shall pay the
indemnifications due for expropriations or easements necessary to
execute the agreement, as well as the acquisition of licensing with
the competent bodies, including those of environmental nature;
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VI - The term, venue and time in which the interested
parties will be given the data, studies and other elements and
information necessary for bid preparation, as well as the cost of
their acquisition;
VII - the exclusivity term that the first utilities will have to
use the hired capacity of the new transport gas pipelines.
VIII - the term of the concession and the possibility of
extension, as the case may be.
Article 18. Where the participation of enterprises in
consortium is allowed, the tender protocol shall contain the
following requirements:
I - evidence of public or private commitment of consortium
formation, signed by the consortium members;
II - appointment of a consortium leading enterprise,
responsible for the consortium and for running the operations,
without prejudice to the joint responsibility of the other members;
III - submission, by each of the consortium members, of the
documents required for the purposes of evaluating the technical
and economic-financial qualification of the consortium;
IV - prohibition of participation of the same enterprise in
another consortium - or individually - in the bidding process for
the same transport gas pipeline;
V - granting of a concession to the winning consortium,
subject to the registering of deed of incorporation of a consortium,
pursuant to the sole paragraph of article 279 of Law 6404 of
December 15, 1976.
Article 19. In case of participation of a foreign enterprise,
the tender protocol shall contain the requirement that it submits,
along with its bid in a separate envelope:
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I - evidence of technical capacity, financial competence and
legal and fiscal status pursuant to regulation to be issued by the ANP;
II - full content of its instrument of incorporation, and evidence
that it is organized and regularly operational, pursuant to the laws of
its country;
III - appointment of a legal representative with the ANP, with
special powers to carry out acts and assume responsibilities regarding
the bidding process and the bid submitted;
IV - in case of becoming a winning bidder, commitment
to establish an enterprise according to the Brazilian laws, with
headquarters and administration in Brazil.
Sole Paragraph. The execution of the concession agreement
shall be subject to the effective compliance with the commitment
undertaken according to item IV in the head paragraph of this article.
Section IV
Judgment of the Bidding Process
Article 20. The judgment of the bidding process shall identify

the most valuable bid, according to objective criteria established
in article 13 or paragraph 1 of article 15 hereof, and shall comply
with the principles of legality, impersonality, morality, publicity,
and equality among the bidders.
Section V
The Concession Agreement
Article 21. The concession contract shall faithfully reflect

the conditions of the tender protocol and of the winning bid, and
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shall have the following essential clauses:
I - the description of the gas pipeline object of concession;
II - the list of goods and facilities intended for and, in
this capacity, considered as bound to the performance of the
transport activity, followed by the specification of the rules on
the abandonment and relinquishment of areas, and the removal
of equipment, as well as the conditions in which these will be
incorporated by the Union, in case of expiration of the concession;
VIII - the term of the concession and its extension conditions,
as the case may be.
IV - the implementation schedule, the minimum investment
estimated and the gas pipeline expansion hypotheses;
V - the annual cost and the adjustment criteria;
VI - the guarantees offered by the concessionaire, including
as regards the performance of the proposed investment;
VII - the specification of the rules regarding the relinquishment
and abandonment of areas, including the removal of equipment
and incorporation of goods to the Union’s assets;
VIII - the follow-up and inspection procedures for the
activities of the concessionaire, as well as for agreement audit;
IX - the obligation, by the concessionaire, to provide the
ANP with reports, data and information regarding the activities
developed;
X - the access rules for any interested utility to the gas pipeline
object of the concession, according to the provisions herein;
XI - the rules for the resolution of disputes related to the
agreement and its performance, including conciliation and
international arbitration;
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XI - the cases of termination and expiration of the agreement;
XIII - the applicable sanctions in case of failure, by the
concessionaire, to comply with the contractual obligations.
XIV - the exclusivity term during which the first utilities will
have to use the hired capacity of the new transport gas pipelines.
Article 22. The concessionaire shall:
I - enter into transport agreement with the utilities for all
types of services offered, which shall be previously approved by
the ANP;
II - adopt, in every operation, the actions necessary for the
conservation of the facilities, the areas occupied and the natural
resources potentially affected, thus ensuring the safety of the
persons, and for the protection of the environment;
III - establish an emergency and contingency plan against
accidents and any other facts or circumstances that interrupt or
may interrupt the transport services;
IV - in case of any emergency or contingency, immediately
notify the fact to the ANP and the relevant authorities;
V - be civil liable for the actions of its agents and indemnify
for any and all damage arising out of the activities performed,
and the Union shall be reimbursed for the charges they may have
to bear as a result of possible claims motivated by acts of the
concessionaire;
VI - adopt the best practices of the international natural gas
industry and comply with the rules, as well as with the applicable
technical and scientific procedures, related to the transport of
natural gas.
VII - deliver, in electronic media accessible to any interested
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party, information on the characteristics of its installations, the
services rendered, the applicable rates, the available capacities and
the agreements, specifying parts, terms and quantities involved.
Article 23. The concessionaire may, for the performance of
its duties, with due regard for the conditions and limits established
in the regulations:
I - use, for the execution of the services, equipment belonging
to third parties;
II - hire, with third parties, the development of inherent,
ancillary or supplementary activities, as well as the implementation
of associated projects.
§ 1. In any case, the concessionaire shall remain responsible
before the ANP and the utilities.
§ 2. The relationships between the concessionaire and third
parties shall be governed by the ordinary law, and the latter shall
not have rights before the Union.
I - provide information of technical, operational, economic-
financial and accounting nature or other, related to the service,
pursuant to the regulations;
II - keep accounting records of the gas transport activity
separated from the activity of storage of natural gas;
III - submit, for approval by the ANP, the draft standard
agreement to be entered into with the utilities, with a clause for
the resolution of possible controversies, which may provide for
arbitration agreement, pursuant to Law 9307 of September 23,
1996;
IV - submit to the activity’s regulations and inspection.
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Article 25. The spin-off, consolidation, conversion, merger,
capital decrease of the concessionaire or the transfer of controlling
interest shall depend on prior approval by the ANP.
Sole Paragraph. (VETOED)
Section VI
Authorization for the Transport
of Natural Gas Activity
Article 26. The term for the new authorizations dealt with in
item II of the head paragraph of article 3 herein shall be thirty (30)
years, and it may be extended for equal term, with due regard for
the rules set forth upon approval and the regulations.
§ 1. The authorized expansion of the gas pipeline shall be
with its respective regime and remaining term.
§ 2. The provisions contemplated by articles 22, 23 and 24
thereof shall be applicable to authorized carriers dealt with in this
article.
Article 27. The goods intended for, and considered as bound
to the performance of the transport activity under the authorization
regime, regarding the gas pipelines derived from international
agreements, shall be incorporated to the Union’s assets after the
end of the term, upon declaration of public utility, and fair and
previous indemnification in cash, observing the provisions of
paragraph 3 of article 15 hereof, pursuant to the regulation.
Article 28. The natural gas transport rates for the new gas
pipelines object of authorization shall be proposed by the carrier and
approved by the ANP, according to criteria set forth by the latter.
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Section VII
Existing Transport Gas Pipelines
Article 29. The new concession agreements or the granting

of authorization for expansion of transport facility shall not harm
the existing rights of carriers and utilities, and the same remaining
term and the same gas pipeline regime shall be granted.
Article 30. For the pipeline transport of natural gas, the
authorizations issued by the ANP are hereby ratified until the date
of issuance of this Law, pursuant to article 56 of Law 9478 of
August 6, 1997.
§ 1. Upon compliance with the obligations set forth or to
be set forth at the moment of granting an in the regulation, the
authorizations referred to in the head paragraph of this article
shall last for thirty (30) years, from the date of publication hereof
or, for the cases of the projects dealt with in paragraph 2 of this
article, from the date of granting of the authorization.
§ 2. The provisions of this article are applicable to the
projects under environmental licensing projects that, on the date
of publication hereof, had not obtained authorization from the
ANP yet.
§ 3. For the case of projects dealt with in the head paragraph
and in paragraph 2 of this article, the exclusivity term the first
utilities will have shall be ten (10) years, from the beginning of
the commercial operation of the respective transport gas pipeline.
§ 4. The goods and facilities intended for the performance
of the transport activity under the authorization regime, dealt
with in this article, shall be considered as bound to the respective
authorization and, upon declaration of public utility and fair and
previous indemnification in cash, shall be incorporated to the
Union’s assets at the end of the term.
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§ 5. The provisions set forth in articles 22, 23 and 24 hereof
are applicable to the authorized carriers within this article.
Article 31. The transport rates and revision criteria already
defined up to the date of publication hereof are hereby preserved.
Section VIII
Access of Third Parties to the Gas Pipelines
and Assignment of Capacity
Article 32. The access of third parties to the transport

gas pipelines are hereby ensured, pursuant to the act and its
regulations, in compliance with the provisions of paragraph 2 of
article 3 and of paragraph 3 of article 30 hereof.
Article 33. The access to the transport gas pipelines shall
be through the hiring of the following transport services, among
other ways provided for by the regulations:
I - firm, in available capacity;
II - interruptible, in idle capacity; and
III - extraordinary, in available capacity;
Sole Paragraph. The access to the gas pipelines shall be first
in the available capacity and, only after its full hiring the right to
access the idle capacity shall be granted, according to the provisions
of paragraph 2 of article 3 and of paragraph 3 of article 30 hereof.
Article 34. The access to the firm transport service, in
available capacity, referred to item I of the head paragraph of article
33 hereof, shall be through public call for tender carried out by the
ANP, according to guidelines of the Ministry of Mines and Energy.
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Sole Paragraph. The accesses to the interruptible transport
services, in idle capacity, and extraordinary, in available capacity,
shall be pursuant to the regulations, having the publicity,
transparency and guarantee of access ensured to all interested
parties.
Article 35. The assignment of capacity is hereby authorized,
thus understood as a transfer, in whole or in part, of the right to
use the firm transport capacity hired.
Sole Paragraph. The ANP shall regulate the capacity
assignment dealt with in this article, so as to preserve the carrier’s
rights.
CHAPTER III
IMPORT AND EXPORT OF NATURAL GAS
Article 36. Any enterprise or consortium of enterprises

organized under the Brazilian laws, with headquarters and
administration in the Country, may receive authorization from the
Ministry of Mines and Energy to perform natural gas import and
export activities.
Sole Paragraph. The performance of natural gas import and
export shall observe the guidelines established by the CNPE, in
particular those related to the provisions of article 4 of Law 8176
of February 8, 1991.
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CHAPTER IV
STORAGE AND PACKAGING OF NATURAL GAS
Article 37. The storage of natural gas shall be performed

by enterprise or consortium of enterprises organized under the
Brazilian laws, with headquarters and administration in the
Country, at the entrepreneur’s own risk and expense, through
concession, preceded by bidding process, or authorization.
Article 38. The storage of natural gas in hydrocarbon
reservoirs relinquished to the Union, and in other non-producing
geological formations shall be object of concession for use,
preceded by bidding process under the competition method,
pursuant to paragraph 1 of article 22 of Law 8666 of June 21,
1993, and the exploration shall be at the concessionaire’s own
risk and expense.
§ 1. Ministry of Mines and Energy or, the ANP through
delegation, shall define the geological formations referred to
in the head paragraph of this article that shall be object of the
bidding process.
§ 2. The ANP shall prepare the tender protocols and promote
the bidding process for the concession of the storage activities
dealt with in the head paragraph of this article.
§ 3, The ANP, through delegation of the Ministry of Mines
and Energy, shall enter into the concession agreements for the
storage of natural gas.
with the ANP, establish the exclusivity term for the agents whose
hiring storage capacity has enabled or contributed to enable the
implementation of storage facility dealt with in the head paragraph
of this article.
24 | Law 11909 of march 4, 2009

§ 5, The imported or produced natural gas, pursuant to article
26 of Law 9478 of August 6, 1997, and stored in natural geological
formations shall not constitute property of the Union, according
to article 20 of the Federal Constitution.
Article 39. The ANP shall deliver geological data regarding
the areas with potential for the storage of natural gas to the
interested parties, with due consideration, for analysis and further
confirmation of its suitability.
§ 1. The performance of non-exclusive exploratory activities
necessary for the confirmation of suitability of the areas with
potential for storage shall depend on authorization from the ANP.
§ 2. All data obtained in the exploratory activities dealt with
in paragraph 1 of this article shall be transferred to the ANP, free
of charge.
Article 40. The storage of natural gas in a facility other than
those provided for in article 38 hereof shall be authorized by the
ANP, pursuant to the applicable law.
Article 41. The packaging of natural gas shall be performed
by enterprise or consortium of enterprises organized under
the Brazilian laws, with headquarters and administration in
the Country, at the entrepreneur’s own risk and expense, upon
authorization.
Article 42. The ANP shall regulate the packaging activity
for the transport and commercialization of natural gas to the end
consumer through alternative means to the pipelines.
§ 1. Alternative means to the pipelines means the movement
of natural gas by highway, railway and waterways.
§ 2. The ANP shall cooperate with other agencies to adapt
the regulation of the transport referred to in paragraph 1 of this
article, as the case may be.
Law 11909 of march 4, 2009 | 25

CHAPTER V
GAS PRODUCTION OFFLOADING PIPELINES AND
FACILITIES FOR PROCESSING,
TREATMENT, LIQUEFACTION,
REGASIFICATION OF NATURAL GAS

administration in the Country, may receive authorization from
the ANP to construct, expand the capacity and operate natural gas
processing or treatment plants.
Sole Paragraph. The natural gas processing or treatment
activity may be authorized for enterprises that comply with the
technical, economic and legal requirements set forth by regulation.
administration in the Country, may receive authorization from
the ANP to construct and operate natural gas liquefaction and
regasification plants, as well as gas pipelines for the production
transfer and offloading out of the concession for the exploration
and production of petroleum and natural gas.
Sole Paragraph. The regulation shall issue rules on the
eligibility of the interested parties and the conditions for the
authorization, envisaging the conditions for the transfer of its
ownership, upon compliance with the environmental protection
and safety requirements.
Article 45. The gas pipelines for production offloading,
the natural gas treatment or processing plants, as well as the
liquefaction and regasification terminals, are exempt from
granting access to third parties.
26 | Law 11909 of march 4, 2009

CHAPTER VI
DISTRIBUTION AND COMMERCIALIZATION
OF NATURAL GAS
Article 46. The free consumer, the self-producer or self-

importer whose needs for movement of natural gas cannot
be fulfilled by the state distribution company, may directly
construct and implement facilities and pipelines for its own
specific consumption, by means of an agreement assigning its
operation and maintenance to the state distribution company, and
the facilities and pipelines shall be incorporated to the State’s
assets through declaration of public utility and fair and previous
indemnification, in case of full use.
§ 1. The operation and maintenance rates for the facilities
shall be established by the state regulating body according to
the principles of reasonableness, transparency, publicity, and the
specific characteristics of each facility.
§ 2. In case the facilities and pipelines are constructed
and implemented by the state distribution companies, the rates
established by the state regulating body according shall consider
the investment, operation and maintenance costs, observing the
principles of reasonableness, transparency, publicity, and the
§ 3. In case the distribution facilities are constructed by the
free consumer, the self-producer or self-importer, pursuant to the
head paragraph of this article, the state distribution company may
request that the facilities are sized in a way to allow that other users
have their needs met, negotiating the necessary compensations
with the free consumer, the self-producer or self-importer, under
arbitration of the state regulating body.
Law 11909 of march 4, 2009 | 27

Article 47. Except for the provisions of paragraph 2 of article
25 of the Federal Constitution, the commercialization of natural
gas shall be upon the execution of agreements filed with the ANP.
§ 1. The ANP shall inform the origin or characteristics of the
reservoirs that will support the supply of the natural gas volumes
hired.
§ 2. The ANP may, according to specific regulation, request
the data referred to in paragraph 1 of this article, from the natural
gas sales agent.
Article 48. The natural gas commercialization agreements
shall contain a clause for the resolution of possible controversies,
which may provide for arbitration agreement, pursuant to Law
9307 of September 23, 1996;
Article 49. The public enterprises and the government-
controlled corporations, their subsidiaries and affiliated
companies, holders of concession or authorization, are hereby
authorized to adhere to the instrument and arbitration agreement
referred to in article 48 hereof.
Sole Paragraph. The rights related to credits and debts
deriving of hiring of natural gas dealt with in article 47 hereof are
hereby regarded as available.
CHAPTER VII
CONTINGENCY IN THE SUPPLY
OF NATURAL GAS
Article 50. in situations characterized as contingency in

the supply of natural gas, upon proposition from the National
Council on Energy Policy - CNPE and Presidential Decree, the
28 | Law 11909 of march 4, 2009

obligations of gas supply, in activities within the Union’s scope
of competence, and rendering of transport services, object of
agreements executed between the parties, may be suspended,
according to guidelines and policies contained in the Contingency
Plan, pursuant to regulation by the Executive Branch.
§ 1. Contingency means the temporary, actual or potential
incapacity to fully meet the demand for natural gas supplied
on a firm basis, arising out of non-anticipated and involuntary
supervening facts, in activities within the Union’s scope of
competence, resulting in significant impact in the supply of the
natural gas market.
§ 2. In situations of contingency, firm basis shall mean the
supply method agreed upon between the parties, by which the
supplier undertakes to regularly deliver the gas; such concept
comprises the proven consumption of the suppliers in their
production, transport, processing and industrial facilities.
Article 51. The establishment of the Contingency Committee
is hereby authorized, to be coordinated by the Minister of Mines
and Energy, whose composition and operation shall be set forth
by regulation, and whose duties shall include the preparation,
implementation and follow-up of the Contingency Plan for the
supply of natural gas.
§ 1. The Contingency Plan, pursuant to the regulation, shall
provide for:
I - initial measures, where applicable;
II - measures to mitigate the reduction in the gas supply;
III - priority consumption;
IV - equal distribution of possible reductions in the gas
supply, meeting the priority consumption needs and respecting
the limitations in logistics.
Law 11909 of march 4, 2009 | 29

§ 2. In situations of contingency with immediate repercussion,
the agents involved with the contingency shall adopt initial
measures, compatible with the guidelines of this Law and its
regulation, until the composition of the Contingency Committee.
§ 3. Upon the composition of the Contingency Committee,
the initial measures mentioned in Paragraph 2 of this article shall
be approved by the Committee, in case they are in compliance
with this Law and its regulation.
§ 4. The Contingency Committee shall declare the end of the
contingency.
Article 52. During the period of contingency, the National
Agency of Petroleum, Natural Gas and Biofuels - ANP - shall
assume the coordination of the movement of natural gas in the
Country’s transport network, so as to ensure that the Contingency
Committee resolutions are fully met.
Sole Paragraph. The carriers, under coordination of the ANP,
shall remain responsible for the operation of their gas pipelines that
are part of the transport network during the period of contingency.
Article 53. The ANP shall, pursuant to the regulations,
establish accounting and settlement procedures, to be applied to
all natural gas sector players, aiming at paying off the difference
of amounts derived from the commercial operations carried out
between the parties, due to the execution of the Contingency Plan.
§ 1. Up to the limit of the hired volumes, the suppliers
and carriers affected by the execution of the Contingency Plan,
but not involved in the situation of contingency, shall have the
maintenance of the hired prices assured, even if they supply a
portion of the supplied volume to other consumers or distributors.
§ 2. The establishment of the Settlement Chamber is hereby
authorized, a private legal corporation aimed at performing the
30 | Law 11909 of march 4, 2009

accounting and settlement dealt with in this article, and any
existing entity may be utilized.
§ 3. The costs arising out of the functionality of the Settlement
Chamber shall be borne by the natural gas sector agents, pursuant
to the regulations.
Article 54. Failure to comply with the Contingency Plan
resolutions shall result in pecuniary sanctions corresponding to
twice the loss provoked, according to calculations by the ANP,
to be applied and collected from the violating party by the ANP.
Sole Paragraph. The application of sanctions provided for
in this article does not eliminate or limit the rights of the agents
harmed by such inobservance of the Contingency Plan to demand
indemnification, pursuant to the civil law, against the responsible
for the losses incurred.
Article 55. The application of the Contingency Plan shall not
exempt the agent that caused it from being held liable by fault or
fraud.
CHAPTER VIII
FINAL AND TRANSITORY PROVISIONS
Article 56. The maintenance of the current natural gas

consumption regimes is hereby assured in fertilizer production
plants and national or imported petroleum refining facilities
existing as on the date of publication of this Law.
Article 57. The maintenance of the current exploration
regimes in natural gas pipelines that, as on the date of publication
of this Law, carry out the supply of natural gas in fertilizer
production plants and national or imported petroleum refining
Law 11909 of march 4, 2009 | 31

facilities, is hereby assured.
Article 58. Articles 2, 8, 23, 53 and 58 of Law 9478 of August
6, 1997, shall be effective with the following wording:
“Art. 2 ...................................................................................
...............................................................................................
VII - establishing guidelines for the use of natural gas as
raw material for industrial productive processes, by means of
regulating specific conditions and criteria aiming at its efficient
use, and compatible with the domestic and international markets.
...................................................................................” (NR)
“Art. 8 ....................................................................................
................................................................................................
V - authorizing the refining, liquefaction, regasification,
loading, processing, treatment, transport, storage and packaging
practices;
.............................................................................................
VII - inspecting, directly and pursuant to Law 8078 of
September 11, 1990, or by means of partnerships with bodies
from the Federal District or the States, the activities contained in
the petroleum, natural gas and biofuels sector, as well as applying
the administrative and pecuniary sanctions provided for by the
law, regulation or agreement;
.............................................................................................
XIX - regulating and inspecting the access to gas pipelines’
capacity;
XX - directly or indirectly promoting the public calls for
tender to hire capacity to transport natural gas, according to the
32 | Law 11909 of march 4, 2009

guidelines of the Ministry of Mines and Energy;
XXI - registering the agreements of transport and
interconnection between the transport facilities, including those
originated from overseas, and the commercialization agreements
entered into the market players;
XXII - informing the origin or characterization of the natural
gas reserves hired and to be hired with the market players;
XXIII - regulating and inspecting the execution of the natural
gas storage activity, including as regards the rights of access of
third parties to granted facilities;
XXIV - preparing tender protocols and promoting bidding
rounds for the hiring of concessionaires to explore the transport
and storage activities of natural gas;
XXV - preparing, upon delegation from the Ministry of
Mines and Energy, the concession agreements for the exploration
of the transport and storage activities of natural gas subject to the
concession regime;
XXVI - authorizing the activity of natural gas sales, within
the Union’s scope of competence;
XXVII - establishing criteria for the calculation of the gas
pipelines’ transport and transfer capacity;
XXVIII - cooperate with State and environmental regulatory
bodies, aiming at rendering the rules applicable to the natural gas
sector and markets compatible and standardized.” (NR)
“Art. 23. .................................................................................
§ 1. .........................................................................................
§ 2. The ANP may grant, directly to the owner of production
rights or authorization for mineral coal deposit prospecting,
Law 11909 of march 4, 2009 | 33

concession for use of methane gas that occurs as associated to
that deposit, being exempt from bidding process provided for in
the head paragraph hereof.” (NR)
“Article 53. Any enterprise or consortium of enterprises
that meets the requirements of article 5 hereof may submit a bid
followed by the relevant project to the ANP, for the construction
and operation of refineries and natural gas processing, liquefaction,
regasification and storage facilities, as well as for the expansion
of its capacity.
...................................................................................” (NR)
“Article 58. Any interested party may use the transport
pipelines and maritime terminals now existing or to be built,
except for the Liquefied Natural Gas - LNG - terminals, upon
proper compensation to the owner of the facilities or the natural
gas transport capacity, pursuant to the law and the applicable
regulation.
§ 1. The ANP shall settle the amount and payment conditions
for the proper compensation, based on previously established
criteria, in case there is no agreement between the parties, and
shall also be responsible for checking whether the agreed amount
is compatible with the market.
.............................................................................................
§ 3. The revenue referred to in the head paragraph of this
article shall be allocated to the enterprise that effectively bears the
cost of the natural gas transport capacity.” (NR)
Article 59. Law 9478 of August 6, 1997, enters into force
added of the following article 8-A:
“Article 8-A. The ANP shall be responsible for supervising
the transport of natural gas in the transport chain and coordinating
34 | Law 11909 of march 4, 2009

it in situations characterized as contingency.
§ 1. The Contingency Committee shall define the guidelines
for the coordination of the natural gas transport chain in situations
characterized as contingency, as acknowledged by means of a
Presidential Decree.
§ 2. In the exercise of the duties referred to in the head
paragraph of this article, the ANP, without prejudice to other
duties attributed to it by regulation, shall:
I - supervise the data and information from the transport gas
pipeline control centers;
II - keep the information base regarding the natural gas
transport system always updated, thus providing the Ministry
of Mines and Energy with the information on the system
reinforcement needs;
III - monitor the natural gas input and output to and from
the transport chains, comparing the volumes transported with the
transport agreements in force;
IV - inform the existing movement capacities that are not
being under use and its possible hiring conditions; and
V - establish standards and parameters for the efficient
operation and maintenance of the natural gas transport and storage
system.
§ 3. The parameters and information regarding the transport of
natural gas necessary for the supervision, control and coordination
of the operation of the gas pipelines shall be made available by
the carriers to the ANP, according to specific regulation.
Article 60. This Law shall be in force on the date of its
publication.
Law 11909 of march 4, 2009 | 35

Brasilia, March 4, 2009; 188th year of the Independence and
121th of the Republic.
LUIZ INÁCIO LULA DA SILVA

Tarso Genro
Guido Mantega
Edison Lobão
This text shall not replace the text published in the DOU
(Federal Official Gazette) on 3.5.2009
36 | Law 11909 of march 4, 2009

FEDERATIVE REPUBLIC OF BRAZIL
MINISTRY OF MINES AND ENERGY
DECREE 7382
Of December 2, 2010
Presidency of the Republic
DECREE 7382 OF DECEMBER 2, 2010
Decree 7382 regulates Chapters I through VI

and VIII of Law 11909 of March 4, 2009, which
deal with the activities related to the transport
of natural gas, pursuant to article 177 of the
Federal Constitution, as well as the treatment,
processing, storage, liquefaction, regasification
and commercialization of natural gas.
THE PRESIDENT OF THE REPUBLIC, pursuant to the

powers vested in him through article 84, items IV and VI, “a”, of
the Constitution, and in view of the provisions of Law 10847 of
March 15, 2004, and of Law11909 of March 4, 2009,
DECREES:
CHAPTER I
PRELIMINARY PROVISIONS
Article 1. This Decree regulates Chapters I through VI and

VIII of Law 11909 of March 4, 2009, except for the specific law
on local services of piped gas.
Sole Paragraph. The economic activities dealt with in
this article shall be regulated and inspected by the Union, in
the capacity of granting authority, and may be exercised by an
Decree 7382 of december 2, 2010 | 39

enterprise or consortium organized under the Brazilian laws, with
headquarters and administration in the Country.
Article 2. For the purposes of this Decree, the following
definitions shall apply:
I - Packaging of Natural Gas: confinement of natural gas in
gaseous, liquid or solid form for transport or consumption;
II - Natural Gas Sector Players: corporations or consortia
that perform activities related to the exploration, development,
production, import, export, processing, treatment, transport,
loading, storage, packaging, liquefaction, regasification,
distribution and commercialization of natural gas;
III - Self-Importer: a corporation or consortium authorized to
import natural gas and use part, or all, of its imported product as
raw material or fuel in its industrial facilities;
IV - Self-Producer: a natural gas exploring or producing
corporation or consortium that uses part or all of its production as
raw material or fuel in its industrial facilities;
V - Hired Transport Capacity: daily volume of natural gas
that the carrier shall move to the utility, pursuant to the respective
transport agreement;
VI - Transport Capacity: maximum daily volume of natural
gas that the carrier can carry in a given transport gas pipeline;
VII - Available Capacity: part of the gas pipeline transport
capacity that has not been the subject matter of a firm agreement;
VIII - Idle Capacity: part of the gas pipeline transport capacity
hired that has not been used, on a temporary basis;
IX - Utility: agent that uses or aims at using the natural gas
pipeline transport service, upon authorization of the National
40 | Decree 7382 of december 2, 2010

Agency of Petroleum, Natural Gas and Biofuels - ANP;
X - First Utility: it is the utility whose hiring of transport
capacity has enabled or contributed to enable, in whole or in part,
the construction of the gas pipeline;
XI - Public Call for Tender: a procedure, with secured access
to all interested parties, that aims at hiring transport capacity in
existing pipelines, to be built or expanded;
XII - Commercialization of Natural Gas: purchase and
sale of natural gas, by means of agreements negotiated between
the parties and filed with the ANP, except for the provisions of
paragraph 2 of article 25 of the Constitution;
XIII - Free Consumer: natural gas consumer that, pursuant
to the applicable state law, has the option of acquiring natural gas
from any producer, importer or retailer;
XIV - Private Consumption: volume of natural gas consumed
exclusively in the natural gas production, collection, transfer,
liquefaction, regasification, storage and processing activities;
XV - Storage of Natural Gas: storage of natural gas in natural
or man-made reservoirs.
XVI - Compressed Natural Gas - CNG: any natural gas
processed and packaged for transport in ampoules or cylinders at
ambient temperature and a pressure that keeps it in gaseous state;
XVII - Liquefied Natural Gas - LNG: natural gas submitted
to liquefaction process for storage and transport, subject to
regasification in exclusive plants;
XIX - Gas Production Offloading Pipeline: pipelines in the
production facilities, aimed at the movement of natural gas from
the producing wells to the processing and treatment facilities or
liquefaction units;

XX - Reference Gas Pipeline: gas pipeline project used for
the purposed of defining maximum rates and annual costs to be
considered in the public calls for tender and in the concession
bidding processes;
XXI - Transfer Gas Pipeline: pipeline intended for the
movement of natural gas, considered as being of specific and
exclusive interest of its owner, starting and ending in its own
natural gas production, collection, transfer, storage and processing
facilities;
XXII - Transport Gas Pipeline: gas pipeline that executes
the movement of natural gas from the treatment or processing
facilities, of storage or other transport gas pipelines, to the
storage facilities, other transport gas pipelines and city gates
to state natural gas distribution concessionaires, except for the
cases provided for in items XIX and XXI, including stations for
compression, measurement, pressure reduction and delivery,
pursuant to paragraph 2 of article 25 of the Constitution;
XXIII - Natural Gas Sector: set of economic activities related
to the exploration, development, production, import, export,
processing, treatment, transport, loading, storage, packaging,
liquefaction, regasification, distribution and commercialization
of natural gas;
XXIV - City Gate: a point in the transport gas pipelines where
the natural gas is delivered by the carrier to the utility or any agent
appointed by the latter, pursuant to regulation by the ANP;
XXV - Point of Receipt: a point in the transport gas pipelines
where the natural gas is delivered to the carrier by the utility or
any agent appointed by the latter, pursuant to ANP regulation,
pursuant to regulation by the ANP;
XXVI - Extraordinary Transport Service: method for hiring

available capacity, at any time, and which contains suspension
condition in case of hiring of capacity under the firm method;
XXVII - Firm Transport Service: type of transport service
where the carrier undertakes to schedule and transport the daily
volume of natural gas requested by the utility until the hired
transport capacity set forth in the agreement with the utility;
XXVIII - Interruptible Transport Service: transport service
hired in idle capacity, which may be interrupted by the carrier,
given the scheduled priority of the Firm Transport Service;
XXIX - LNG Terminal: facility used for natural gas
liquefaction or import, discharge and regasification of LNG,
including the ancillary services and temporary storage tanks
necessary for the regasification process and subsequent delivery
of the natural gas to the pipeline network or other means of
transport;
XXX - Carrier: corporation or consortium, concessionaire or
authorized to perform natural gas transport activity by means of
pipelines;
XXXI - Transport of Natural Gas: movement of natural gas
in transport gas pipelines, comprising the construction, expansion
and operation and maintenance of the facilities;
XXV - Treatment or Processing of Natural Gas: set of
operations aiming at enabling its transport, distribution and use
of natural gas;
XXVIII - Liquefaction Plant: facility where natural gas is
liquefied, so as to enable its storage and transport, and it may
comprise natural gas treatment plants, heat exchangers and LNG
storage tanks; and XXXIV - Regasification Plant: facility where
the liquefied natural gas is regasified through imposition of heat
to be introduced in the pipeline network, and it may comprise

LNG storage tanks and regasifiers, as well as supplementary
equipment;
Sole Paragraph. The natural gas regasification and
liquefaction activities are not included in the set of operations
referred to in item XXXII.
Article 3. The natural gas sector players shall, without
limitation:
I - perform the activities pursuant to this Decree, the technical
and environmental standards and the respective concession
agreements or authorizations; and
II - allow the relevant inspection body to have free access,
at any time, to the equipment and facilities connected to the
performance of its activity, as well as its accounting records.
CHAPTER II
TRANSPORT OF NATURAL GAS
Section I
Performing the Transport of Natural Gas Activity
Article 4. The transport of natural gas shall be performed

by corporations or consortia, whose formation is governed by
Brazilian Laws, with headquarters and administration in the
Country, at the entrepreneur’s own risk and expense, under the
following regimes:
I - concession, preceded by bidding process; or
II - authorization.

§ 1. The authorization regime dealt with in item II shall be
applied observing the provisions of paragraph 2 of article 41, in
the following cases:
I - to the transport gas pipelines that involve international
agreements, as defined by the Ministry of Mines and Energy;
II - to the gas pipelines existing on March 5, 2009;
II - to the gas pipelines that, by March 5, 2009, have fulfilled
the following conditions;
a) they are authorized by the ANP and are yet to be
constructed; or
b) they have started the environmental licensing process, but
are yet to be authorized by the ANP;
IV - to the expansions of the gas pipelines provided for in
items I, II and III.
§ 2. The concession regime shall be applicable to the other
transport gas pipelines and their expansions.
§ 3. The corporation or consortium, concessionaire or
authorized to perform the transport of natural gas shall only
perform those activities referred to in article 56 of Law 9478 of
August 6, 1997, in addition to the storage, transport of biofuels
and construction and operation of terminals.
Article 5. The ANP may be provided with the competence
to declare the public utility, for the purposes of expropriation and
establishment of administrative easement of the areas necessary
for the implementation of the gas pipelines granted or authorized,
as well as their ancillary facilities.
Article 6. The Ministry of Mines and Energy shall:
I - propose, on its own initiative or driven by third parties,
the transport gas pipelines that shall be built or expanded;

II - establish the guidelines for the transport capacity hiring
process;
III - define the authorization regime applicable to each case
to the natural gas transport activity, observing the provisions of
article 4.
§ 1. For the purposes of compliance with item I, the Ministry
of Mines and Energy shall prepare the Ten-Year Plan for Expansion
of the Gas Pipeline Transport Network, preferably revised on an
annual basis, based on studies developed by the Energy Research
Company - EPE.
§ 2. The studies to be developed by the EPE shall contain,
without limitation, proposals for routing and compression systems
to be installed, as well as for the location of city gates and the
estimated investments in gas pipelines.
§ 3. The Ministry of Mines and Energy may determine, where
applicable, the use of Public–private Partnership agreement,
pursuant to Law 11079 of December 30, 2004, as well as the use
of resources derived from the Contribution for Intervention in the
Economic Domain - CIDE, pursuant to article 4 of Law 10604
of December 17, 2002, and the Energy Development Account,
according to article 13 of Law 10438 of April 26, 2002, in order
to enable the construction of transport gas pipeline proposed by
its own initiative and considered as being of relevant general
interest.
§ 4. The Ministry of Mines and Energy shall establish rules
for the natural gas sector players to provide the EPE with data for
the preparation of the studies on the expansion of the gas pipeline
transport network.
§ 5. When the construction or expansion of the gas pipeline
is requested by the interested parties, pursuant to item I, the

term between the date of request registry and the corresponding
statement by the Ministry of Mines and Energy on the request
shall not be superior to twelve months.
Article 7. The granting of authorization or bidding round
for the concession for transport activities that envisages the
construction of expansion of gas pipelines shall be preceded by
public call for tender to hire capacity, aiming at identifying the
potential carriers and sizing the effective demand.
Sole Paragraph. The utilities that fail to hold an authorization
shall request its granting to the ANP, in form and term defined by
the latter.
Article 8. The ANP shall prepare the tender protocol for the
public call for tender and shall directly and indirectly promote it,
according to guidelines established by the Ministry of Mines and
Energy.
§ 1. The tender protocol shall contain a proposal for gas
pipeline routing, the expected maximum rate and the method for
definition of the exclusivity term mentioned in paragraph 2 of
article 3 of Law 11909 of 2009, among other parameters.
§ 2. The Ministry of Mines and Energy shall provide the ANP
with the basic information of the reference gas pipeline contained
in the studies for the expansion of the network, as well as the
information available that may contribute for the public call for
tender.
§ 3. During the process of public call for tender, the ANP
shall, on an iterative basis, establish the maximum rate to be
applied to the utilities interested in hiring transport capacity.
§ 4. The ANP shall be aided by the EPE in the bidding
process for the settlement of the maximum rate, as well as the
resizing of the reference gas pipeline facilities, due to the result

of the public call for tender and the iterative process provided for
in paragraph 3.
Article 9. The Ministry of Mines and Energy may determine
that the capacity of a gas pipeline is superior to that identified in
the public call for tender, defining the economic mechanisms to
enable the project, which may establish the use of the Public–
Private Partnership agreement, dealt with in Law 11079 of 2004.
§ 1. For the gas pipelines fallen under this article, the
exclusivity term for the additional capacity, as determined by the
Ministry, may be different from the one established in the public
call for tender.
§ 2. The increase of capacity referred to in the head paragraph
shall not imply an increase in the transport rate of the respective
gas pipeline.
Article 10. The utilities that request transport capacity by the
end of the process of public call for tender, shall enter into a term
of commitment with the ANP, for the purchase of the requested
capacity.
§ 1. The term of commitment referred to in the head paragraph
shall be irreparable and irrevocable and an integral part of the
tender protocol for the concession of natural gas transport activity,
and shall contain, among other information, the maximum rate
and the exclusivity term.
§ 2. The term of commitment shall provide that the
exclusivity term may be reduced or extinct through administrative
proceedings, pursuant to paragraphs 1 through 3 of article. 11.
§ 3. Before the signature of the terms of commitment referred
to in the head paragraph, the Ministry of Mines and Energy shall
announce the decision as to whether the rights granted in article
9th will be used.

Article 11. The Ministry of Mines and Energy shall, after
consulting with the ANP, establish the exclusivity term that the
first utility will have to use the hired capacity of the new transport
gas pipelines.
§ 1. The exclusivity term dealt with in head paragraph shall
be defined so as to meet the following parameters:
I - it shall not be superior to ten years;
II - it shall consider the level of development of the market
to be served;
III - it may be variable due to the result of the public call for
tender, pursuant to the respective tender protocol; and
IV - it shall end when the movement in a gas pipeline
reaches its maximum transport capacity hired, even if the term
established in the public call for tender has not ended, pursuant to
ANP regulation.
§ 2. Whenever the ANP identifies evidence of abusive
practices by the first utilities, supported by the protection provided
by the exclusivity term, produce representation to the competition
defense bodies.
§ 3. After the decision of the competition defense bodies as
for the representation dealt with in paragraph 1, the Ministry of
Mines and Energy may, after consulting with the ANP, without
prejudice to the sanctions applicable to the violations to the
economic regime, provided for in Law 8884 of June 11, 1994,
revise the exclusivity term established beforehand.
§ 4. The ANP, through sanctioning administrative proceedings
investigating the evidence of violation to the rules hereof or
its respective regulations, and which does not fall under the
provisions of paragraph 2, may recommend that the Ministry of

Mines and Energy revises or extinguishes the exclusivity term.
Article 12. The transport gas pipelines may only move natural
gas that meets the specifications established by the ANP, except
for agreements entered into by and between the carriers and the
utilities, previously approved by the ANP, without prejudice to
the other users.
Article 13. The carrier shall allow the interconnection of
other transport and transfer facilities, pursuant to regulation
established by the ANP, observing the natural gas specifications
and the existing rights of the utilities.
Article 14. The ANP shall be responsible for inspecting and
assessing the operational conditions of the granted and authorized
gas pipelines.
§ 1. The ANP shall define the procedures necessary for
the proper follow-up of the goods intended for the natural gas
transport, and considered as bound to the authorization or
concession, including those related to the carriers’ accounting
operations.
§ 2. The ANP shall be responsible for qualifying legal
certifying entities to perform the assessment.
§ 3. The cost of the assessment dealt with in this article
shall be borne by the carrier, which may select, among the legal
certifying entities, the one to render the service.
§ 4. The concessionaire or authorized agent shall submit, to
the ANP, the opinion from the legal certifying entity, followed
by the measures to be adopted to remedy possible identified
problems.
§ 5. The provisions in this article shall also be applicable to
gas pipelines referred to in article 41.

Article 15. The operational exchange of natural gas, named
swap, shall be requested to the carriers by the interested utilities,
pursuant to regulation established by the ANP.
§ 1. The revenues resulting from the swap shall inure for the
reduction of transport rates and coverage of overhead costs of the
carrier and the respective compensation for the capital invested,
to be approved by the ANP.
§ 2. The ANP shall establish the new rate to be paid by the
utilities, considering the provisions of paragraph 1.
§ 3. The new rate established by the ANP for the agent that
requests the swap, pursuant to paragraph 2, may not be inferior to
the existing utilities, even if in backflow.
Article 16. The gas pipelines started in LNG terminals and
interconnected to the transport network which is not part of the
terminal shall be considered as transport gas pipelines.
Sole Paragraph. The ANP shall define which gas pipelines
are part of the LNG Terminals through specific regulation.
Section II
Concession of the Transport of Natural Gas Activity
Article 17. The natural gas transport concessions for

construction or expansion shall be preceded by bidding process
and shall be in force for thirty years from the date of signature of
the indispensable agreement, and it may be extended for at most
another equal term, in the conditions set forth herein and in the
concession agreement.
Article 18. The ANP shall prepare the tender protocols,
the concession agreements and promote the bidding process

for the construction or expansion and operation of the transport
gas pipelines under concession regime, with due regard for the
guidelines from the Ministry of Mines and Energy.
Article 19. The Ministry of Mines and Energy shall enter
into the concession agreements referred to in this Chapter.
Sole Paragraph. The competence provided for in the head
paragraph may be delegated to the ANP by act from the Minister
of Mines and Energy.
Article 20. The preemptive right shall be assured to the
carrier whose facility is being expanded, in case it participates
in the bidding round dealt with in article 17th, under the same
conditions as the winning bidder.
Sole Paragraph. The gas pipelines expansion operation shall
observe the rules established by the ANP.
Article 21. The concessionaire of the pipeline to be expanded
shall have the preemptive right to operate such expansion.
§ 1. In case the original concessionaire exercises the right
provided for in the head paragraph, it shall be entitled to the
operation and maintenance rate calculated based on the criteria
established by the ANP in the tender protocol.
§ 2. In case the original concessionaire does not exercise the
right provided for in the head paragraph, the concessionaires may
agree upon an expansion operation, pursuant to ANP regulation.
Article 22. In the bidding process, the criterion to select the
winning bid shall be that of the lowest annual cost, pursuant to the
regulations hereof and of the tender protocol.
§ 1. The annual cost referred to in the head paragraph
corresponds to the annual amount to be received by the carrier for
the provision of the hired service, pursuant to the tender protocol

and to the concession agreement.
§ 2. The natural gas transport rates to be paid by the utilities
shall be established by the ANP by applying, to the maximum rate
set in the bidding process, the same factor corresponding to the
ratio between the annual cost established in the bidding process
and the maximum annual cost defined in the tender protocol.
§ 3. In situations of sharing background transport
infrastructure, the reduction factor of the rate may be inferior to
that established in paragraph 2nd, according to ANP regulation.
Article 23. The natural gas transport concessions may be
extended for at most thirty years, pursuant to the tender protocol
and the concession agreement.
§ 1. If provided by the agreement, the concessionaire may
request the extension of the concession term to the ANP, at least
twelve months before the date of expiration of the concession
agreement.
§ 2. The ANP shall produce evidence, giving opinion on the
request by the concessionaire within three months, from the date
of the request, forwarding it for decision by the Ministry of Mines
and Energy.
§ 3. In case the ANP expresses an opinion on the extension of
the concession, the case to be forwarded to the Ministry of Mines
and Energy shall contain:
I - the new amount of annual cost to be drawn on by the
concessionaire, in case no bonus is charged for the continuation;
II - the maximum amount for the bonus recommended to be
paid by the concessionaire, in case the previous annual cost is kept;
III - at least five alternatives combining bonus and annual
cost; and

IV - the new concession term that shall preferably coincide
with the remaining expansion concession term, if applicable.
§ 4. The resources derived from the payment of bonus for
the continuation of the transport services may be reverted to the
may be, for the indemnification of the installments connected to
§ 5. The Ministry of Mines and Energy, after consulting
with the National Council on Energy Policy - CNPE, shall decide
on the request within two months, from the receipt of the case,
defining the best financial alternative to be performed among the
propositions submitted by the ANP.
§ 6. The concessionaire shall have thirty days, after the
notification made by the Ministry of Mines and Energy, to inform
on its interest in extending the concession term, pursuant to the
decision referred to in paragraph 5.
§ 7. For compliance with the provisions of paragraph 3, the
ANP shall be aided by the EPE.
Article 24. In case of expiration of the concession, the goods
intended for, and considered as bound to the performance of the
transport activity shall be incorporated to the Union’s assets, upon
declaration of public utility, and fair and previous indemnification
in cash, under the following:
I - only the portion of the goods to be depreciated or amortized
shall be indemnified;
II - the rules for the definition of the indemnification amount
shall be previously defined by the ANP and consider assets
valuation methods, such as the current value and the cost of asset

replacement, discounting the depreciation and the amortization
occurred until the date of expiration of the concession; and
III - Only the goods whose installation had been previously
and explicitly authorized by the ANP shall be indemnified.
§ 1. In any case of expiration of the concession, the
concessionaire shall, at its own risk and expense, remove the
equipments and assets that are not object of incorporation by the
Union, being obliged to remedy or indemnify for the damage
arising out of its activities and undertake environmental recovery
action as established by the relevant bodies.
§ 2. For the purposes of the provisions of paragraph 1, the
removal of buried tubes and fittings is mandatory provided it is
established by the body in charge of environmental licensing of
the gas pipeline, in case of expiration of the activity.
§ 3. The concessionaire whose concession has been
expired shall continue to render transport services until a new
concessionaire is appointed or the pipeline is disabled observing
the provisions in item XV of article 30.
§ 4. The operation rates to be paid to the carrier obliged to
keep rendering transport services, as provided in paragraph 3rd,
shall be established by the ANP so as to cover the effective costs
of an efficient operation.
Article 25. The goods incorporated to the Union’s assets
pursuant to article 24 shall be under the administration of the
Granting Authority and may compose a set of goods and facilities
to be bidden together with a new concession for the performance
of transport activity.
§ 1. In the bidding round referred to in the head paragraph
of this article, the highest payment for the use of the public asset,
the lowest annual cost requested, or also a combination of both

criteria, may be used as selection criterion for the winning bidder.
§ 2. The resources collected with the bidding round dealt
with in the head paragraph of this article may be reverted to the
may be, for the indemnification of the installments connected to
§ 3. The bidding process provided for in the head paragraph
of this article may begin up to twenty-four months prior to the
expiration of the concession term, with a view to ensuring the
continuation of the services rendered, observing the provisions of
paragraph 1st of article 23.
Article 26. The transfer of the concession agreement with the
preservation of its object and contract conditions is allowed.
Sole Paragraph. The transfer of the agreement may only
occur upon prior and express authorization by the ANP.
Section III
The Tender Protocol
Article 27. The tender protocol shall be accompanied by the

respective basic draft concession agreement and shall indicate:
I - the route of the gas pipeline transport object of concession,
the city gates, as well as the forecast transport capacity and the
criteria used for its sizing;
II - the maximum annual transport revenue estimated and the
criteria used for its calculation;

III - the selection criterion for the most valuable proposal
pursuant to article 22 or to paragraph 1 of article 25;
IV - the requirements to be fulfilled by the bidders and the
pre-qualification criteria, as the case may be;
V - the list of documents required and criteria to be followed
for the evaluation of the technical capacity, the financial
competence and the legal status of the interested parties, as well
for the technical and economic-financial judgment of the bid;
VI - the explicit indication that the concessionaire shall pay the
indemnifications due for expropriations or easements necessary to
execute the agreement, as well as the acquisition of licensing with
the competent bodies, including those of environmental nature;
VII - The term, venue and time in which the interested
parties will be given the data, studies and other elements and
information necessary for bid preparation, as well as the cost of
their acquisition;
VIII - the exclusivity term that the first utilities will have to
use the hired capacity of the new transport gas pipelines object of
the concession.
IX - the term of the concession and the possibility of
extension, as the case may be.
X - the mandatory items to be contained in the technical
proposal to be submitted together with the financial proposal,
including:
a) the detailed preliminary gas pipeline routing;
b) the description of all equipment to be incorporated to the
gas pipeline, including the compression station, if applicable;
c) diameter and length of the gas pipeline;

d) specification of the materials to be used;
XI - the minimum index of local content of the gas pipeline;
XII - the list of the utilities that entered into terms of
commitment deriving from the public call for tender, pursuant to
article 10, with the respective volumes and guarantees;
XIII - the form and origin of the resources that will be used
for compliance with the provisions of paragraph 3 of article 6 and
of article 9; and
XIV - the terms of commitment entered into by the utilities.
§ 1. For the purposes of this article, the gas pipeline routing
means the one considered by the ANP for the definition of the
maximum rate of the public call for tender and the maximum cost
allowed in the concession bidding process.
§ 2. The ANP shall be aided by the EPE in the definition
of the maximum annual cost dealt with in item II of the head
paragraph.
Article 28. Where the participation of enterprises in
consortium is allowed, the tender protocol shall contain the
following requirements:
I - evidence of public or private commitment of consortium
formation, signed by the consortium members;
II - appointment of a consortium leading enterprise,
responsible for the consortium and for running the operations
before the Granting Authority, without prejudice to the joint
responsibility of the other members;
III - submission, by each of the consortium members, of the
documents required for the purposes of evaluating the technical
and economic-financial qualification of the consortium;

IV - prohibition of participation of the same enterprise in
another consortium - or individually - in the bidding process for
the same transport gas pipeline;
V - granting of a concession to the winning consortium,
subject to the registering of deed of incorporation of a consortium,
pursuant to the sole paragraph of article 279 of Law 6404 of
December 15, 1976.
Article 29. In case of participation of a foreign enterprise,
the tender protocol shall contain the requirement that it submits,
along with its bid in a separate envelope:
I - evidence of technical capacity, financial competence and
legal and fiscal status, pursuant to ANP regulation;
II - full content of its instrument of incorporation, and
evidence that it is organized and regularly operational, pursuant
to the laws of its country;
III - appointment of a legal representative with the ANP,
with special powers to carry out acts and assume responsibilities
regarding the bidding process and the bid submitted; and
IV - in case of becoming a winning bidder, commitment
to establish an enterprise according to the Brazilian laws, with
headquarters and administration in the Country.
Sole Paragraph. The execution of the concession agreement
shall be subject to the effective compliance with the commitment
undertaken according to item IV.

Section IV
The Concession Agreement
Article 30. The concession contract shall faithfully reflect

the conditions of the tender protocol and the winning bid, and
shall have the following essential clauses:
I - the description of the gas pipeline object of concession;
II - the list of goods and facilities intended for and, in
this capacity, considered as bound to the performance of the
transport activity, followed by the specification of the rules on
the abandonment and relinquishment of areas, and the removal
of equipment, as well as the conditions in which these will be
incorporated by the Union, in case of expiration of the concession;
III - The concessionaire’s obligation to replace the related
goods, necessary for the good performance of the transport
activity, regardless of the remaining concession term;
IV - the term of the concession and its extension conditions,
as the case may be.
V - the implementation schedule, the minimum investment
estimated and the gas pipeline expansion hypotheses;
VI - the annual cost and the adjustment criteria;
VII - the guarantees offered by the concessionaire, including
as regards the performance of the proposed investment;
VIII - the follow-up and inspection procedures for the
activities of the concessionaire, as well as for agreement audit;
IX - the obligation, by the concessionaire, to provide the
ANP with reports, data and information regarding the activities
developed;

X - the access rules for any interested utility to the gas
pipeline object of the concession, according to the provisions of
Law 11909 of 2009, and Section VII of Chapter II;
XI - the rules on the resolution of disputes related to the
agreement and its performance, including conciliation and
international arbitration;
XII - the cases of termination and expiration of the agreement;
XIII - the applicable sanctions in case of failure, by the
concessionaire, to comply with the contractual obligations.
XIV - the exclusivity term that the first utilities will have to
use the hired capacity of the new transport gas pipelines.
XV - the maximum term the concessionaire undertakes to
operate the gas pipeline after the expiration of the concession; and
XVI - the form and origin of the resources that will be used
for compliance with the provisions of paragraph 3 of article 6 and
of article 9.
§ 1. The expansion hypotheses for the gas pipeline, referred
to in item V, are limited to the transport capacity hired in the public
call for tender that preceded the bidding process and represent the
growth curve of the hired capacity against time.
§ 2. The adjustment criteria, dealt with in item VI, shall
consider the Extended Consumer Price Index – IPCA as an
instrument of monetary correction to be used in the adjustment
process of the annual cost.
Article 31. The concession agreement shall contain the
concessionaire’s obligations to meet minimum performance
indicators, pursuant to ANP’s regulation.

I - enter into the respective transport agreement with the
utilities for all types of services offered, which shall be previously
approved by the ANP;
II - adopt, in every operation, the actions necessary for the
conservation of the facilities, the areas occupied and the natural
resources potentially affected, thus ensuring the safety of the
persons, and for the protection of the environment;
III - establish an emergency and contingency plan against
accidents and any other facts or circumstances that interrupt or
may interrupt the transport services;
IV - in case of any emergency or contingency, immediately
notify the fact to the ANP and the relevant authorities, adopting
the initial measures provided for in paragraph 2 of article 51 of
Law 11909 of 2009;
V - be civil liable for the actions of its agents and indemnify
for any and all damage arising out of the activities performed,
and the Union shall be reimbursed for the charges they may have
to bear as a result of possible claims motivated by acts of the
concessionaire;
VI - adopt the best practices of the international natural gas
industry and comply with the rules, as well as with the applicable
technical and scientific procedures, related to the transport of
natural gas.
VII - deliver, in electronic media accessible to any interested
party and at a place of easy access, updated information on the
characteristics of its installations, the services rendered, the
applicable rates, the available capacities and the agreements,
specifying parts, terms and quantities involved; and
VIII - obtain all licenses, authorizations and consents deemed
necessary for the construction and operation of the gas pipeline,
including the environmental ones.

Article 33. The concessionaire may, for the performance of
its duties, with due regard for the conditions and limits established
by the ANP and the concession agreement:
I - use, for the execution of the services, equipment belonging
to third parties; and
II - hire, with third parties, the development of inherent,
ancillary or supplementary activities, as well as the implementation
of associated projects.
§ 1. The agreements entered into between the concessionaire
and third parties deriving from items I and II shall be governed by
private law, and no legal relationship shall be established between
the third parties and the Union.
§ 2. In any case, the concessionaire shall always remain
responsible before the ANP and the utilities.
I - provide information of technical, operational, economic-
financial and accounting nature or other, related to the service,
pursuant to ANP’s regulations;
II - keep accounting records of the gas transport activity
separated from the activity of storage of natural gas and other
activities developed;
III - submit, for approval by the ANP, the draft standard
agreement to be entered into with the utilities, with a clause for
the resolution of possible controversies, which may provide for
arbitration agreement, pursuant to Law 9307 of September 23,
1996; and
IV - submit to the law that governs the activity’s regulations
and inspection.
Article 35. The spin-off, consolidation, conversion, merger,

capital decrease of the concessionaire or the transfer of controlling
interest, as well as the change in the membership of the consortium
holding the concession, shall depend on prior approval by the
ANP, under penalty of expiration of the concession.
Sole Paragraph. The approval dealt with in this article
refers to regulatory aspects under responsibility of the ANP, and
that shall not eliminate the need for approval by other public
administration bodies, pursuant to the applicable law, in particular
those responsible for the competition defense.
Section V
Authorization for the Transport
of Natural Gas Activity
Article 36. The term for the new authorizations dealt with in
item II of the head paragraph of article 4th shall be thirty years,
and it may be extended for equal term, with due regard for the
rules set forth in the granting act and this Decree.
§ 1. The authorized expansion of the gas pipeline shall be
with its respective regime and remaining term.
§ 2. The provisions provided for in articles 32, 33 and 34
hereof shall be applicable to authorized carriers dealt with in this
article.
Article 37. The goods intended for, and considered as bound
to the performance of the transport activity under the authorization
regime, regarding the gas pipelines derived from international
agreements, shall be incorporated to the Union’s assets after the
end of the term, upon declaration of public utility, and fair and
previous indemnification in cash, observing the provisions of
items I, II and III of the head paragraph of article 24.

Article 38. The natural gas transport rates for the new gas
pipelines object of authorization shall be proposed by the carrier
and approved by the ANP, according to criteria set forth by the
latter.
Article 39th. The ANP shall authorize the construction,
expansion and operation of international gas pipelines after
favorable manifestation by the Ministry of Mines and Energy.
Section VI
Existing Transport Gas Pipelines
Article 40. The new concession agreements or the granting

of authorization for expansion of transport facility shall not harm
the existing rights of carriers and utilities.
Article 41. For the pipeline transport of natural gas, the
authorizations issued by the ANP are hereby ratified until the date
of issuance of this Law, pursuant to article 56 of Law 9478 of
August 6, 1997.
§ 1. The projects under environmental licensing process on
March 5, 2009, shall be authorized by the ANP, observing the
necessary requirements for the respective granting.
§ 2. Upon compliance with the obligations set forth or to
be set forth at the moment of granting an in the regulation, the
authorizations referred to in the head paragraph shall last until
March 5, 2039, and the authorizations referred to in paragraph 1
shall be effective for thirty years, from the date of publication of
the granting.
§ 3. After the expiration of the authorization terms dealt with
in this article, the project shall be granted, upon calling for bids,
or disabled.

§ 4. For the case of projects dealt with in the head paragraph
and in paragraph 1, the exclusivity term the first utilities will
have shall be ten years, from the beginning of the commercial
operation of the respective transport gas pipeline.
§ 5. The list of goods and facilities related to the transport
activity under authorization regime dealt with in this article shall
be forwarded by the respective carriers to the ANP, for approval,
within one hundred and eighty days as from the date of publication
of this Decree.
§ 6. The carriers shall forward to the ANP, within ninety
days from the date of publication of this Decree, the list of gas
pipelines that fall under paragraph 1, informing the environmental
licensing body and the supporting documentation corroborating
that the gas pipeline was under environmental licensing process on
March 5, 2009, under penalty of not receiving the corresponding
authorization.
§ 7. The authorized carrier shall replace the goods related,
necessary for the good performance of the transport activity,
regardless of the remaining concession term, observing the
regulation issued by the ANP.
§ 8. The provisions provided for in articles 32, 33 and 34
shall be applicable to authorized carriers dealt with in this article.
Article 42. The expansion of gas pipeline that falls under
article 41 shall be under authorization regime, with the same
terms as that remaining from the original authorization of gas
pipeline to be expanded.
Sole Paragraph. The definition of transport rate of the
expansion dealt with in the head paragraph may consider an
investment amortization and depreciation period superior to the
authorization term, as established by the ANP.

Article 43. The expansion of capacity of the existing pipelines
shall:
I - be authorized, pursuant to regulation established by the
ANP;
II - be preceded by public call for tender to be conducted
by the ANP and shall directly and indirectly be promoted by it,
according to guidelines established by the Ministry of Mines and
Energy; and
III - respect the exclusivity term, observing the provisions of
item IV of paragraph 1 of article 11.
Sole Paragraph. The carrier that holds the authorization of
existing pipeline shall have the preemptive right to carry out the
expansion dealt with in the head paragraph.
Article 44. In case of expiration of the authorization, the
goods connected shall be incorporated to the Union’s assets, upon
declaration of public utility, and fair and previous indemnification
in cash, under the following:
I - only the portion of the goods to be depreciated or amortized
shall be indemnified;
II - the indemnification amount shall be defined by the ANP
and consider assets valuation methods, such as the current value
and the cost of asset replacement, discounting the depreciation
and the amortization occurred until the date of expiration of the
authorization; and
III - Only the goods whose installation had been previously
and explicitly authorized by the ANP shall be indemnified.
Sole Paragraph. The provisions of article 25 are applicable
to the goods dealt with in this article, as the case may be.

Article 45. The ANP shall announce, within one hundred and
eighty days from the publication of this Decree, the list of transport
pipelines authorized, under environmental licensing process
and transfer pipelines to be converted into transport pipelines,
pursuant to this Decree and Law 9478 of 1997, informing, where
applicable the expiration date for the exclusivity term.
Article 46. The transport rates and revision criteria already
defined up to March 5, 2009, are hereby preserved.
§ 1. The ANP, within ninety days as from the publication
of this Decree, shall announce the transport rates and revision
criteria referred to in the head paragraph, observing the principles
of transparency and publicity.
§ 2. Except for the income tax, the creation, change or
expiration of any legal taxes and duties shall imply in upward or
downward revision of the rate, in case their impact is corroborated,
as applicable, after approval by the ANP.
Article 47. The transport agreements entered into until March
5, 2009 and whose expiration terms exceed the authorization
period defined in paragraph 2 of article 41, shall be assumed by
the concessionaire that is appointed to operate the gas pipeline,
for the remaining agreement term, and the respective information
shall be an integral part of the corresponding tender protocol.
Sole Paragraph. The transport agreements to be entered into
due to the expansion of capacity of the gas pipelines referred to
in article 41 and whose duration exceeds the authorization term,
shall also be assumed by the concessionaire, and the respective
information shall be an integral part of the corresponding tender
protocol.

Section VII
Access of Third Parties to the Gas Pipelines
and Assignment of Capacity
Article 48th. The access of third parties to the transport gas

pipelines shall be granted, respecting the exclusivity term.
Sole Paragraph. The swap of natural gas, dealt with in
article 15, is considered as a form of access by third parties to the
transport gas pipelines.
Article 49. The access to the transport gas pipelines shall
be through the hiring of the following transport services, among
other ways:
I - firm, in available capacity;
II - interruptible, in idle capacity; and
III - extraordinary, in available capacity;
§ 1. The access to the gas pipelines shall be first in the
available capacity and, only after its full hiring the right to access
the idle capacity shall be granted.
§ 2. The access to the firm transport service, in available
capacity, shall be through public call for tender carried out by
the ANP, according to guidelines of the Ministry of Mines and
Energy.
§ 3. The access to the interruptible and extraordinary transport
services, shall be pursuant to the regulations established by the
ANP, having the publicity, transparency and guarantee of access
ensured to all interested parties.
Article 50. The ANP shall establish the criteria for the
definition of the amounts due by third parties that accessed the

transport gas pipelines, the payment conditions and its destination.
Article 51. The assignment of the right to use the firm
transport capacity hired is hereby authorized, including during
the exclusivity term.
Sole Paragraph. The ANP shall regulate the capacity
assignment dealt with in this article, so as to preserve the carrier’s
rights.
Article 52. The expansion of the transport capacity
is characterizes as a form of access of third parties to the gas
pipelines, with due regard to the exclusivity term established,
observing the provisions of article 11.
CHAPTER III
IMPORT AND EXPORT OF NATURAL GAS
Article 53. Any corporation or consortium organized under

the Brazilian laws, with headquarters and administration in the
Country, may receive authorization from the Ministry of Mines
and Energy to perform natural gas import and export activities.
§ 1. The ANP shall produce evidence for the request to
exercise the natural gas import and export activity, also with the
inspection of that activity.
§ 2. The performance of natural gas import and export shall
observe the guidelines established by the National Council on
Energy Policy - CNPE.

CHAPTER IV
STORAGE AND PACKAGING OF NATURAL GAS
Article 54. The storage of natural gas shall be performed

by a corporation or consortium organized under the Brazilian
laws, with headquarters and administration in the Country, at
the entrepreneur’s own risk and expense, through concession,
preceded by bidding process, or authorization.
Article 55. The storage of natural gas in hydrocarbon
reservoirs relinquished to the Union, and in other non-producing
geological formations shall be object of concession for use,
preceded by bidding process under the competition method,
pursuant to paragraph 1 of article 22 of Law 8666 of June 21,
1993, and the exploration shall be at the concessionaire’s own
risk and expense.
§ 1. The Ministry of Mines and Energy or, the ANP through
delegation, shall define the geological formations referred to
in the head paragraph of this article that shall be object of the
bidding process.
§ 2. The interested parties may suggest geological formations
to be granted for storage.
§ 3. For the performance of the provisions of paragraph 1
and analysis of the provisions of paragraph 2, both the Ministry
of Mines and Energy and the ANP may request specific technical
studies with the EPE.
§ 4. The ANP shall prepare the tender protocols and promote
the bidding process for the concession of the storage activities
dealt with in the head paragraph.
§ 5. The Ministry of Mines and Energy shall enter into the
concession agreements for the storage of natural gas, and may

delegate such competence to the ANP.
with the ANP, establish the exclusivity term for the agents whose
hiring storage capacity has enabled or contributed to enable
the implementation of storage facility dealt with in the head
paragraph.
§ 7. The ANP shall establish the rules for access of third
parties to the storage facilities objects of concession agreements,
respecting the exclusivity term defined in paragraph 6.
§ 8. The concession agreement referred to in the head
paragraph shall set forth, among other things, the concessionaire’s
obligations when the agreement expires and regarding the
relinquishment of the reservoir explored.
§ 9. The imported or produced natural gas, pursuant to article
26 of Law 9478 of August 6, 1997, and stored in natural geological
formations shall not constitute property of the Union, according
to article 20 of the Constitution.
Article 56. The ANP shall deliver geological data regarding
the areas with potential for the storage of natural gas to the
interested parties, with due consideration.
§ 1. The ANP shall authorize the interested parties referred
to in the head paragraph, pursuant to regulation, to carry out
non-exclusive exploratory surveys in areas with potential for the
storage of natural gas.
§ 2. All data obtained in the exploratory activities dealt with
in paragraph 1 shall be transferred to the ANP, free of charge.
Article 57. It is the concessionaires’ responsibility to zeal for
the integrity of the geological formations used for the storage of
natural gas, and the ANP shall define the procedures to follow-up

the activity.
Sole Paragraph. The concession agreement shall contain
the sanctions applicable due to the bad use of the geological
formations.
Article 58. The storage of natural gas in a facility other
than those provided for in article 55 hereof shall be authorized,
regulated and inspected by the ANP, and the access of third parties
to the facilities is not mandatory.
Article 59. The packaging of natural gas shall be performed
by a corporation or consortium organized under the Brazilian
laws, with headquarters and administration in the Country, at the
entrepreneur’s own risk and expense, upon authorization.
Sole Paragraph. The filling of gas pipeline, as well as increase
or lowering of pressure shall not characterize as packaging of
natural gas.
Article 60. The ANP shall regulate the packaging activity
for the transport and commercialization of natural gas to the end
consumer through alternative means to the pipelines.
§ 1. Alternative means to the pipelines means the movement
of natural gas by highway, railway and waterways.
§ 2. The ANP shall cooperate with other public bodies and
agencies to adapt the regulation of the transport referred to in
paragraph 1.

CHAPTER V
GAS PRODUCTION OFFLOADING PIPELINES AND
FACILITIES FOR PROCESSING, TREATMENT,
LIQUEFACTION, REGASIFICATION OF NATURAL GAS
Article 61. Any corporation or consortium organized under

the Brazilian laws, with headquarters and administration in the
Country, may receive authorization from the ANP to construct,
expand the capacity and operate natural gas liquefaction and
regasification plants, LNG terminals, natural gas liquefaction and
regasification plants, as well as gas pipelines for the production
transfer and offloading out of the concession for the exploration
and production of petroleum and natural gas.
Sole Paragraph. The ANP shall establish the requirements
and conditions for the authorization and transfer of authorization
ownership, respecting the environmental protection and safety
standards of the facilities.
Article 62. The gas pipelines for production offloading,
the natural gas treatment or processing plants, as well as the
liquefaction and regasification terminals, are exempt from
granting access to third parties..
CHAPTER VI
DISTRIBUTION AND COMMERCIALIZATION
OF NATURAL GAS
Article 63. The free consumer, the self-producer or self-

importer whose needs for movement of natural gas cannot
be fulfilled by the state distribution company, may directly
construct and implement facilities and pipelines for its own

specific consumption, by means of an agreement assigning its
operation and maintenance to the state distribution company, and
the facilities and pipelines shall be incorporated to the State’s
assets through declaration of public utility and fair and previous
indemnification, in case of full use.
§ 1. The operation and maintenance rates for the facilities
shall be established by the state regulating body according to
the principles of reasonableness, transparency, publicity, and the
§ 2. In case the facilities and pipelines are constructed
and implemented by the state distribution companies, the rates
established by the state regulating body according shall consider
the investment, operation and maintenance costs, observing the
principles of reasonableness, transparency, publicity, and the
§ 3. In case the distribution facilities are constructed by the
free consumer, the self-producer or self-importer, pursuant to the
head paragraph, the state distribution company may request that
the facilities are sized in a way to allow that other users have their
needs met, negotiating the necessary compensations with the free
consumer, the self-producer or self-importer, under arbitration of
the state regulating body.
Article 64. The corporations that wish to act as self-producer
or self-importer shall be previously registered with the ANP.
§ 1. The self-importer registration shall only be granted to
corporations authorized to carry out the import activity.
§ 2. The self-producer registration shall only be granted
to corporations that enter into agreements with the Union to
explore and produce petroleum and natural gas, with commercial
discovery declared and production development plan approved
by the ANP.

§ 3. The self-producer registration for the members of the
consortium that fall under the provisions of paragraph 2 shall
be granted according to the limits of its participation in the gas
production in the consortia mentioned above.
§ 4. The corporations that act as self-producer and self-
importer shall notify the ANP on a monthly basis, within the
terms and forms established by the latter, the natural gas volumes
used in each of their facilities.
§ 5. For the purposes of qualification as self-producer or self-
importer, according to the provisions of items III and IV of article
2nd, their facilities means those explored or held by the same
corporation that performs the natural gas import or production.
§ 6. The corporations directly or indirectly controlled by other
corporations that perform the natural gas import or production,
as well as by the controlling shareholders of the producing or
importing corporation, may request their qualification as self-
producer or self-importer to the ANP.
§ 7, In case of corporations associated to producing or
importing corporation, the qualification referred to in paragraph 6
shall be proportional to their interest in the producing or importing
corporation in the associated corporation’s share capital.
Article 65. The construction, implementation and incorporation
of the facilities and pipelines referred to in the head paragraph of
article 63 to state distribution companies’ assets, as well as the
qualification of end users as free consumers, shall respect the
specific law on the local piped gas distribution services.
Sole Paragraph. The ANP shall be responsible for authorizing
the construction and operation of the city gates the interconnect
transport gas pipelines to the pipelines referred to in article 63.
Article 66. Except for the provisions of paragraph 2 of article

25 of the Constitution, the commercialization of natural gas shall
be upon the execution of agreements filed with the ANP.
§ 1. The ANP shall inform the origin or characteristics of the
reservoirs that will support the supply of the natural gas volumes
hired, when requested by the acquirer at the time of the hiring.
§ 2. The ANP may, according to specific regulation, request
the data referred to in paragraph 1st from the natural gas sales
agent.
§ 3. The natural gas commercialization activity dealt with
in the head paragraph, defined in item XII of article 2, shall only
be performed by agent registered with the ANP, pursuant to its
regulation.
Article 67. The natural gas commercialization agreements
shall contain a clause for the resolution of possible controversies,
which may provide for arbitration agreement, pursuant to Lawn
9307 of 1996.
Article 68. The public enterprises and the government-
controlled corporations, their subsidiaries and affiliated
companies, holders of concession or authorization, are hereby
authorized to adhere to the instrument and arbitration agreement
referred to in article 67th.
Sole Paragraph. The rights related to credits and debts
deriving of hiring of natural gas dealt with in article 47 of Law
11909 of 2009, are hereby regarded as available.

CHAPTER VII
FINAL AND TRANSITORY PROVISIONS
Article 69. The maintenance of the current natural gas

consumption regimes is hereby assured in fertilizer production
plants and national or imported petroleum refining facilities
existing as of March 5, 2009.
Sole Paragraph. The natural gas volumes consumed in each
of the fertilizer production plants and in the refineries dealt with
in the head paragraph shall be monthly informed to the ANP.
Article 70. The maintenance of the gas pipelines exploration
regimes and methods that supply natural gas to the national or
imported petroleum refining facilities and the fertilizer production
plans existing as of March 5, 2009 is hereby assured.
Article 71. The ANP shall provide, within one hundred and
eighty days after the publication of this Decree, the requalification
of all gas pipelines that do not fall under the new definitions
provided in this Decree, and whose prior qualification is not kept
by the provisions in article 70th.
Article 72. The ANP shall issue rules to characterize the
expansion of capacity of transport gas pipelines.
Article 73. The ANP shall deliver, in electronic media
accessible to any interested party and at a place of easy access,
updated information on the daily movement and the capacity of
all transport gas pipelines, as well as the hired transport capacity,
the available capacity, the idle capacity and the exclusivity terms.
Article 74. The acts issued by the ANP as from the date of
publication of Law 11909 of 2009 related to the import of natural
gas are hereby ratified.

Article 75. The Ministry of Mines and Energy and the ANP
shall issue supplementary rules and necessary regulations for the
effective implementation of the provisions of this Decree.
Article 76. This Decree shall come into force on the date of
its publication.
Brasilia, December 2, 2010; 189th year of the Independence
and 122nd of the Republic.
LUIZ INÁCIO LULA DA SILVA
Márcio Pereira Zimmermann
This text shall not replace the text published in the DOU
(Federal Official Gazette) on 12.3.2009

Brazil Gas Law 2009

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Law 11909

Law 11909 of march 4, 2009 |1

1. LAW 11909 OF MARCH 4, 2009 .................................... PAGE 2

2. DECREE 7382 OF DECEMBER 2, 2010 .......................... PAGE 30

LAW 11909 OF MARCH 4, 2009

Law 11909 deals with the activities related to

AS THE PRESIDENT OF THE REPUBLIC, I let it be

Article 1. This Law establishes rules for the exploration of

Law 11909 of march 4, 2009 |3

4 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 |5

6 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 |7

Article 3. The transport of natural gas shall be performed

§ 1. The authorization regime dealt with in item II of the

8 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 |9

10 | Law 11909 of march 4, 2009

Article 10. The natural gas transport concessions hired

Law 11909 of march 4, 2009 | 11

12 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 13

Article 17. The tender protocol shall be accompanied by the

14 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 15

Article 20. The judgment of the bidding process shall identify

Article 21. The concession contract shall faithfully reflect

16 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 17

18 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 19

20 | Law 11909 of march 4, 2009

Article 29. The new concession agreements or the granting

Law 11909 of march 4, 2009 | 21

Article 32. The access of third parties to the transport

22 | Law 11909 of march 4, 2009

Article 36. Any enterprise or consortium of enterprises

Law 11909 of march 4, 2009 | 23

Article 37. The storage of natural gas shall be performed

24 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 25

Article 43. Any enterprise or consortium of enterprises

26 | Law 11909 of march 4, 2009

Article 46. The free consumer, the self-producer or self-

Law 11909 of march 4, 2009 | 27

Article 50. in situations characterized as contingency in

28 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 29

30 | Law 11909 of march 4, 2009

Article 56. The maintenance of the current natural gas

Law 11909 of march 4, 2009 | 31

32 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 33

34 | Law 11909 of march 4, 2009

Law 11909 of march 4, 2009 | 35

LUIZ INÁCIO LULA DA SILVA

36 | Law 11909 of march 4, 2009

DECREE 7382 OF DECEMBER 2, 2010

Decree 7382 regulates Chapters I through VI

THE PRESIDENT OF THE REPUBLIC, pursuant to the

Article 1. This Decree regulates Chapters I through VI and

Decree 7382 of december 2, 2010 | 39

40 | Decree 7382 of december 2, 2010